Nevada faces a “chorus of concerns” over its expansive fiduciary proposal

I was recently interviewed by Fund Intelligence regarding the comment letters sent to the Nevada Securities Division regarding its draft fiduciary duty regulations applicable to broker-dealers and investment advisers. We have already closely analyzed the proposal and written about its potential effects on private fund managers. I told Fund Intelligence: “Now that the comment period has closed, Nevada will have to wade through the chorus of concerns ranging from federal preemption to myriad interpretive gaps and loose threads in the proposal.” Some of the comment letters paid considerable attention to the numerous preemption issues, including under NSMIA and ERISA, created by the draft regulations.  In addition to preemption, the proposal also suffers from ambiguity in a number of key areas, which we have previously outlined, rendering the proposal overly broad.